Canada has retaliated against new US tariffs with sweeping countermeasures, as Prime Minister Justin Trudeau condemned Donald Trump’s latest trade war as an attack on Canada’s economy and sovereignty.
Speaking after the US imposed 25% tariffs on Canadian and Mexican goods—including a 10% levy on Canadian energy exports—Trudeau announced retaliatory tariffs on C$155bn (US$107bn) worth of US goods, warning of the economic pain the conflict would cause on both sides of the border.
“We’ve been in tough spots before, but we have not only survived—we have emerged stronger than ever,” Trudeau said. “When it comes to defending our great nation, there is no price we aren’t willing to pay.”
The first round of Canadian tariffs, worth C$30bn, takes effect immediately, with the remainder following within 21 days, allowing businesses time to adjust supply chains. Trudeau framed Trump’s actions as reckless, saying: “Americans will lose jobs. Americans will pay more for groceries, for gas, for cars, for homes.” Addressing Trump directly, he added, “Even though you’re a very smart guy, this is a very dumb thing to do.”
Trump claimed his tariffs were necessary to stop fentanyl smuggling from Canada, a justification Trudeau called “completely bogus, completely unjustified, completely false.” The US Drug Enforcement Administration does not list Canada as a significant source of fentanyl.
The escalating trade conflict has triggered a groundswell of Canadian patriotism, uniting political leaders across provinces. Ontario’s Premier Doug Ford warned that his government would make Americans “feel pain”, pledging a 25% export tax on electricity supplied to three US states if the tariffs persist. Ontario has also removed US alcohol from liquor stores, banned US firms from government contracts, and scrapped a deal with Elon Musk’s Starlink.
Quebec’s Premier François Legault said his province could lose up to 160,000 jobs if the tariffs remain in place. Alberta’s Premier Danielle Smith, a longtime advocate of maintaining energy ties with the US, called Trump’s move “an unjustifiable economic attack” and signalled Alberta could cut oil exports to the US in response.
US markets reacted sharply to the trade war, with stocks tumbling and inflation fears rising. In a social media post, Trump threatened further retaliation, warning: “Any Canadian counter-tariffs will be met with immediate and reciprocal measures.”
